be a good candidate for video poker or the blackjack tables. Or are you impulsive and undisciplined? Does a trip to the mall for a package of batteries turn into a shopping spree that sets you back a couple of paychecks? Do you struggle to stick to a diet? If you lack control in everyday activities, such as shopping and eating, then casinos can become a dangerous diversion. I’m not suggesting that you swear off casino visits if you can’t stop yourself from eating just one more chocolate chip cookie. But understanding your nature and taking precautions to protect yourself from “cleaning out the cookie jar” is important.
Resisting the urge to chase losses
Even if you’re a highly disciplined soul, the hypnotic sway of the casino can seduce you into uncharacteristic behavior. One typical lure that pulls gamblers off the cliff of control is chasing your losses. For example, say you’ve lost more than you intended. But, you think, if you could just win one big bet, your problem would be erased. So, chasing your losses is tempting, especially in a casino where people seem to be winning all around you.
The reality is that most people walk out of casinos with less money than they started. Living to fight another day is far superior to outstaying your welcome and chasing your losses with bigger and bigger bets. It’s a natural instinct, and it’s a phenomenon that seems to sweep over casinos from the Mississippi River to Monte Carlo.
One reason some of the best professional gamblers win is they don’t chase their losses. As a matter of fact, the best pros win, not because they’re lucky, but because they have a long-term perspective on their gambling. Annie Duke is one of the world’s most accomplished poker players. Her philosophy is to not fixate on individual sessions or daily results. Over time, all players get dealt the same cards. The important difference is how skillfully they play those cards. Maintaining a proper emotional attitude and composure, even when you’re losing, ultimately spells success.
Sipping, not sinking
Part of the casino experience is enjoying the festive atmosphere, bright lights, and free drinks. But enjoying and exceeding are two different events, and the quickest way to short-circuit your budget is to overindulge at the bar.
Overindulging is tempting, of course, with cocktail servers adeptly appearing just when the game gets tense, graciously slipping a fresh cold drink next to your elbow. As you sweat a little more, the next drink goes down more quickly. And before you know it, you’ve lost count of how many drinks you’ve had, not to mention how much money you’ve lost.
And here’s a truly shocking insider secret: Cocktail waitresses serve nonalcoholic beverages, too. In fact, they often carry excess supplies of bottled waters on their carefully balanced trays just in case. Take advantage of that and mix some H20 into your diet at least every third drink. It will slow your alcohol intake and reduce the blast radius of your hangover.
Recognizing a gambling addiction
Exceeding your established gambling budget by a few hundred dollars on a trip to Vegas or your nearby riverboat casino is one matter. Getting yourself tens of thousands of dollars in debt over time is another matter entirely; this sort of trouble is a serious gambling problem. Gambling addiction is a complex problem far beyond the scope of this book, not to mention this chapter. But I’d be irresponsible not to address it in a chapter about managing your gambling money.
Gambling debts almost ruined Edgar Allan Poe and Thomas Jefferson and have devastated many families. Whether you’re a beginning gambler, an occasional gambler, or a regular bettor, you need to know the signs of gambling addiction. Here’s a helpful set of questions that might give you some insight:
Is gambling your only recreational activity?
Do you often exceed your gambling budget for a given time period (for example, a month or a pay period)?
Do you often spend time thinking of ways to acquire money to gamble with?
Have you ever lied to someone important to you (spouse, parent, sibling, child, boss, or Starbucks barista) about how much you gamble?
Has gambling ever caused problems with your family members or friends? To be specific: Has gambling ever been the reason a person who was once close to you has cut ties with you or avoids you?
Has gambling ever interrupted or caused problems in your professional or academic life?
Have you ever felt the need to bet increasing amounts of money relative to your income to maintain a set “level of excitement”?
Have you ever taken a long-term loan with the express purpose of using that money to gamble?
Have you ever written a bad check or stolen money to gamble?
Has gambling ever caused you to be late on payments of your primary bills (mortgage, car, or health insurance)?
When you aren’t gambling, do you feel restless or irritable?
Have you ever tried and failed to stop, cut down, or control your gambling hobby?
Do you ever gamble to relieve feelings of guilt, anxiety, helplessness, or depression?
If your answer is YES to more than two of those, you just might be a person — one of many — who is vulnerable to gambling’s dangerous charms. Check out Appendix B for more resources that can help you with gambling addiction.
Understanding Taxes and the Law
Hopefully, you remember the old saying: Only two things are certain in life — death and taxes. In casinos, two outcomes are also inevitable. First, the house always wins in the long run. Second, when gamblers somehow turn the tables and get lucky in the short run, Uncle Sam wins too.
You may wonder how the federal government actually gets its share. This section covers all the important tax-related issues of gambling and helps you keep complete records, so you aren’t scratching your head when tax day comes around.
Deducting your losses and taxing your wins
First problem: Classifying taxes on gambling winnings is a complex subject. Another problem: The tax code often changes from year to year. So, if you’re a regular gambler, consulting with your CPA or accountant each year is critical. I’m not a tax advisor (and don’t play one on TV).
